GE6757 – Total Quality Management

(Anna University Syllabus,2013 Regulations)

Lesson Notes UNIT-I

UNIT I INTRODUCTION
Introduction
Need for quality
Evolution of quality
Definition of quality
Dimensions of manufacturing and service quality
Basic concepts of TQM
Definition of TQM – TQM Framework
Contributions of Deming, Juran and Crosby – Barriers to TQM.
Quality Statements
Customer Orientation – customer Satisfaction – Customer Complaints
Customer Retention – Costs of Quality
1) What is Total Quality Management?

 Total – Made up of the whole(or) Complete.

 Quality – Degree of Excellence a product or service provides to the customer in
present and future.
 Management – Act , art, or manner of handling , controlling, directing, etc.
 TQM is the art of managing the whole to achieve excellence.

2) What is the need for Quality Management ?

Reasons for quality becoming a cardinal priority for most organizations:
• Competition – Today’s market demand high quality products at low
cost. Having `high quality’ reputation is not enough! Internal cost of
maintaining the reputation should be less.
• Changing customer – The new customer is not only commanding
priority based on volume but is more demanding about the “quality
system.”
• Changing product mix – The shift from low volume, high price to
high volume, low price have resulted in a need to reduce the internal
cost of poor quality.
• Product complexity – As systems have become more complex, the
reliability
requirements for suppliers of components have become more
stringent.
• Higher levels of customer satisfaction – Higher customers
expectations are getting spawned by increasing competition.
 3) Discuss the evolution of Quality Movement.
Evolution of quality –Means & Focus
 4) Define Quality.
Definition of quality
Today, there is no single universal definition of quality.
 Some people view quality as performance to standards.
 Others view it as ―meeting the customer’s needs
 Satisfying the customer.
Let’s look at some of the more common definitions of quality.
 Conformance to specifications measures how well the product or service meets the
targets and tolerances determined by its designers.

5) What are the dimensions of Quality?

The 9 Dimensions of Quality
 Performance
 Features
 Conformance
 Reliability
 Durability
 Service
 Response- of Dealer/ Mfgr. to Customer
 Aesthetics – of product
 Reputation- of Mfgr./Dealer

6) What are the basic concepts of TQM?

TQM six basic Concepts
1) Management commitment to TQM principles and methods & long term Quality plans for
the Organisation
2) Focus on customers – internal & external
3) Quality at all levels of the work force.
4) Continuous improvement of the production/business process.
5) Treating suppliers as partners
6) Establish performance measures for the processes.
 7) List the effects of poor Quality.
Effects of poor Quality
1) Low customer satisfaction
2) Low productivity, sales & profit
3) Low morale of workforce
4) More re-work, material & labour costs
5) High inspection costs
6) Delay in shipping
7) High repair costs
8) Higher inventory costs
9) Greater waste of material

8) What are the benefits of Quality?

Benefits of Quality
1) Higher customer satisfaction
2) Reliable products/services
3) Better efficiency of operations
4) More productivity & profit
5) Better morale of work force
6) Less wastage costs
7) Less Inspection costs
8) Improved process
9) More market share
10) Spread of happiness & prosperity
11) Better quality of life for all.

9) Explain in detail the TQM Framework.

 10) What are the contributions of Quality Gurus for the Quality Movement?
CONTRIBUTIONS BY QUALITY GURUS

To fully understand the TQM movement, we need to look at the philosophies of notable
individuals who have shaped the evolution of TQM. Their philosophies and teachings have
contributed to our knowledge and understanding of quality today.

Walter A. Shewhart
Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied
randomness and recognized that variability existed in all manufacturing processes. He developed
quality control charts that are used to identify whether the variability in the process is random or
due to an assignable cause, such as poor workers or miscalibrated machinery. He stressed that
eliminating variability improves quality. His work created the foundation for today’s statistical
process control, and he is often referred to as the ―grandfather of quality control.

W. Edwards Deming is often referred to as the ―father of quality control.

He was a statistics professor at New York University in the 1940s. After World War II he
assisted many Japanese companies in improving quality. The Japanese regarded him so highly
that in 1951 they established the Deming Prize, an annual award given to firms that demonstrate
outstanding quality. It was almost 30 years later that American businesses began adopting
Deming’s philosophy. A number of elements of Deming’s philosophy depart from traditional
notions of quality. The first is the role management should play in a company’s quality

11) Explain Deming ‘s Philosophy in detail.

Deming’s Philosophy ( 14 Points)

1) Create and publish aims/purpose of firm
2) Learn the new philosophy
3) Understand purpose of inspection
4) Stop awarding business on price alone
5) Improve constantly and forever the system
6) Institute training
7) Teach and institute leadership
8) Drive out fear, create trust and a climate for innovation
9) Optimize efforts of teams, groups and staff areas
10) Eliminate exhortations for the work force
11) Eliminate numerical quotas for workforce and MBO
12) Remove barriers that rob people of pride of workmanship
13) Encourage education and self-empowerment for everyone
14) Take action to accomplish the transformation
12) What are the barriers to implementing TQM?

1) Lack of management commitment. – Management must consistently apply the

principles of TQM.
2) Inability to change organizational culture- People change if their needs are met.
Remove fear & instill trust.
3) Improper planning – Implementation plan ; modify plan as the plan evolves
4) Lack of continuous training and education – Training & education are ongoing process
5) Incompatible organizational structure and isolated individuals and department –
Use of multi functional teams can break down the barriers of TQm implementation
6) Ineffective measurement techniques and lack of access to data and results - Key
characteristics of organizations have to be measured for effective decision making.
7) Paying inadequate attention to internal and external customers – Organizations must
understand the changing needs & expectations of customers
8) Inadequate use of empowerment and team work – Teams needs training & individuals
should be empowered to make decisions.
9) Failure to continually improve – It is tempting to sit back and rest . Lack of continuous
improvement would tamper the progress. Even if you are in right track, you will get run
over if you just sit there.

Definition of TQM:
Total Quality Management is a management approach that tries to achieve and sustain long
term organizational success by encouraging employee feedback and participation, satisfying
customer needs and expectations, respecting societal values and beliefs, and obeying
governmental statutes and regulations.

Five Pillars of TQM are,

 Product
 Process
 System
 People
 Leadership

Benefits of TQM:
Customer satisfaction oriented benefits:
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance

Economic improvement oriented benefits:

1. Reduction in operating costs
2. Reduction in operating losses
3. Reduction in field service costs
4. Reduction in liability exposure